Binary options look straightforward, have no barrier to entry and don’t require a trader having to learn a lot about the market. If making millions this way seems too good to be true, your instincts are right. Here are a few of the ways you can recognize a scammer.
If a binary options trading house is not a member of any of the well-known regulatory bodies in the industry, such as ASIC, CySEC or the NFA, it’s highly likely they are a scam. No matter how “fair” the trades seem if the binary brokers don’t already abide by the lax rules of these bodies are probably involved in illegal activities, set up to take your money.
Incoming Phone Calls
One of the greatest indicators of a scam is when people call you offering investments. Successful brokers don’t go around calling strangers to bring in investors. This is a major red flag. If you ever get a phone call from a trading house asking you to put down money for a guaranteed win, put down the phone and consider calling the authorities.
Steady Losing Streak
Most brokers can rig the system. Often brokers will shortchange wins and this can be verified by checking what direction the market went with another source. Statistically even people who know nothing about the market have to win some of the time.
Stupid Sounding Assets
If the options on offer at the broker’s websites sound silly and unlikely to be traded on the live market, you are likely dealing with a scammer.
Many fraudulent binary options scams will create several similar looking websites with different names and a variety of offers to reach a larger audience. If you notice that a binary options website looks just like the one you saw last week, stay away – they are likely a scam.
Beware of Automated Software
Any automated software you install for binary options trading could be making trades for you that you do not even know about. Always be suspicious of a program provider offering you a get rich quick scheme. There’s no such a thing.
What You Should Do
Always read the contract in full. If you think you have been taken for a ride and lost money to online trading scams contact Birman Law. It’s our mission to help people recover their funds from binary options scammers.